...As NDC Cancels Cape Coast Stadium contract

More gargantuan judgment debts totaling a whooping sum of $1 billion looms for Ghanaian tax payers following the wrongful cancellation of two contracts by the governing National Democratic Congress (NDC).

The looming debt comes in the wake of contrived claims by the governing NDC officials that the erstwhile NPP administration had terminated some contracts, which had led to the Mills administration doling out huge sums of money to individuals and organizations as judgment debts/compensations.

The late President Atta Mills was said to have approved the cancellation of the contracts, namely the Bankswitch Ghana Limited for pre-destination inspection project and the construction of Cape Coast stadium by Pol-Mot holdings, a Polish construction firm and its Ghanaian counterparts, Motherwell International Limited.

The NDC administration terminated the contracts signed by the Kufuor administration because owners of the companies involved were said to be sympathizers of New Patriotic Party (NPP). Following the termination, owners of Bankswitch Ghana Limited have dragged Ghana to the International Court of Arbitration, claiming over $800 million for wrongful abrogation of the contract between them and Government of Ghana. Similarly, the contractors for the construction of the Cape Coast stadium are in the country’s courts, demanding about $200 million.

In an interview, Dr. Matthew Opoku Prempeh, NPP Member of Parliament for Manhyia, indicated contracts the Mills administration cancelled were potentially even more damaging to the country than the Isofoton contract which government is falsely accusing Kwadwo Mpiani of cancelling.

“If they are claiming the moral high ground, let’s look at the contracts they have cancelled”, Dr. Opoku Prempeh, who is popularly known as Napo, jabbed the NDC government, alleging “President Mills approved that some contracts be cancelled”.

“President Mills approved the cancellation of the Cape Coast stadium and Bankswitch contracts, which could potentially cause the nation over $1 billion,” he stressed.

“Who are the beneficiaries of the cancellation of these contracts,” he quizzed. Per the contract between the Government of Ghana and Bankswitch Ghana Ltd, the latter, together with its partners like the Government Services division of Intertek, was to, among others, implement state-of-the-art Customs Management System in Ghana.

Named Ghana Customs Secure Document Management System (GCSDMS), the new system was to provide an integrated, end-to-end system automation associated with customs entry processing, payments and clearance.

The system was supposed to be progressively rolled out during which Ghana Customs, Excise and Preventive Service (CEPS) will use Intertek's independent valuation services to verify the dutiable value of imports into the country so as to rake more revenue to the state.

As part of the contractual agreement, the Bankswitch and its partners were also supposed to give further training to officials of CEPS to effectively perform their duties.

However, this paper had learnt the contract was abrogated by the Mills administration and given to some Destination Inspection Companies (DICs) at the behest of a minister of state.

Regarding the Cape Coast stadium, the Ministry of Youth and Sports had signed a Memorandum of Understanding (MOU) with the Chinese Government towards the construction of the sports facility.

The 15,000 seating-capacity stadium, which was initiated by the Kufuor administration, was reported to have been modified by the Mills administration demanding additional facilities, only to abrogate it later.

The signing of the MOU was heralded by series of meetings between the two parties after a team of Chinese designers visited the proposed site.